Expert Advice for Investing at Forty

Most people in their 40's don't take the time to look at their investment portfolios and how they are performing. 40 may be a halfway point, but you have fewer years left til retirement than when you started.

So if you're hitting the big 4-0 or coming close, take some time to look over your investment portfolio on your own or with your advisor to make sure you’re still on track to achieve all your goals.

Turning forty is a crucial point in our lives, careers and our investments. Here's what the experts had to say:

Scot Johnson

Scot says, “In our view, what you own at any age comes back to when you’ll need to tap into your savings to fund spending vs. funding it from recurring employment-related income.”

In Scot’s point of view, “Circumstances might be similar and thereby provide some guidance from previous experience, but circumstances do vary from household to household, and solutions should as well.”

Darryl Lyons

In Darryl’s example, he states, “We have some heuristics that say that someone who is 40 and makes around $100,000 should have a net worth of $400,000.”

“When someone is around age 40 and invests, they must maintain a heavy exposure to the stock market. A near 100% stock market allocation is not inadequate for someone in their early 40s.”

Although the market will have ups and downs, a 40-year-old’s time horizon justifies a greater stock market allocation if your stomach can tolerate it.

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